So long as the factories run, miners mine, and farmers farm, it's true, society will see this through. But you must understand that what's at stake is our very ability to do these things.
Merely producing goods is not enough; we need to get them to consumers and consumers need to be able to compensate the producers. To this end, we need a financial system through which wealth can easily and painlessly be transfered. Without a healthy financial system, simple things like employment, commerce, shopping, become difficult if not impossible.
Key point: write all the code you want; without a financial system nobody will be able to pay you for it.
True, we'll get through this eventually, the financial system will change and adapt to new circumstances, such is the nature of the market, (It would happen faster if the government wasn't so insistent on propping up the very institutions that were failing.) but it will take a while, and in the meantime, jobs, commerce, industry, all will suffer, especially those elements dependent on easy liquidity and cheap credit, like startups.
Long story short: You should be very worried. Protect your assets. Focus on tangible goods and increase your productivity. Realize that excessive 'trust' is what got us into this mess in the first place, and weather the storm accordingly.
Think of the value (real wealth) in the system (the farmers farming, etc) like ships. The financial system (the money, the credit, etc) like water.
We need both. If all of the water freezes, the ships are still technically there. The wealth still exists, but there's shit-all the boats can do but wait for the spring thaw if they're frozen in the ice.
Yes, but don't forget all the men standing round with hot water hoses. You think they'll just wait for nature to come thaw things out when they just need to turn on the hose?
What caused this problem was excessive liquidity and the tendency of people to gamble. The U.S needs to get more material, and this correction is part of that.
Merely producing goods is not enough; we need to get them to consumers and consumers need to be able to compensate the producers. To this end, we need a financial system through which wealth can easily and painlessly be transfered. Without a healthy financial system, simple things like employment, commerce, shopping, become difficult if not impossible.
Key point: write all the code you want; without a financial system nobody will be able to pay you for it.
True, we'll get through this eventually, the financial system will change and adapt to new circumstances, such is the nature of the market, (It would happen faster if the government wasn't so insistent on propping up the very institutions that were failing.) but it will take a while, and in the meantime, jobs, commerce, industry, all will suffer, especially those elements dependent on easy liquidity and cheap credit, like startups.
Long story short: You should be very worried. Protect your assets. Focus on tangible goods and increase your productivity. Realize that excessive 'trust' is what got us into this mess in the first place, and weather the storm accordingly.